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we recently put in an offer on a fannie mae foreclosure approved for homepath. Now this house was just reduced $8,000 about a week ago. Its been on the market for over a month. There have never been any offers(we talked to listing agent) and no offers other than ours. We put in the offer this morning. We decided to go with the homepath loan and was pre-approved and got the pre-approval letter from our lender. We decided to offer their asking price since they just reduced and we know how picky fannie mae is.Well we did ask for 3% closing and hey we are using their loan. We just cant afford anything more out of pocket so the closing needs to be covered by them or we will walk. How likely do you think since its been on the market so long and no offers, will they accept our offer??? Lately homes have been going back on the market because the appraisals have been coming in lower than the offers and asking price and we know this home is above the appraisal a bit(pretty certain) but that is why we chose homepath loan(we are pre approved for FHA and Conventional as well). Do you think they will just reject it because of the closing costs or possibly accept?
Make sure you know what the comps are. Not all homepath homes are good deal. Just remember that homepath homes will usually require work. If you are struggling with closing cost, how do you plan to pay for renovation? I find it very rare for homepath homes to be in liviable condition.
Remember that for renovation, even free labor mean you have materials costs.
Yeah we have family that can help us with the repairs that we know of which are minor i.e; fix a few fence boards, carpet in living room and a window with a crack(of course the window will be repaired by a professional). That is why we asked for closing to have room just in case other things come up in inspection. We offered full price because we know all the homes in our area are going over appraisal and then falling through because all the appraisals are low that is why we chose the Homepath loan. Its work the full price to us, just wonder if fannie mae would be willing to accept our offer more because its a homepath loan. I do not think SJ08054 understood my question.
Please be careful with Fannie Mae properties. Most if not all in our area are properties that were vacant for years with some serious hidden problems. If any house was sitting vacant for over a year without AC, no matter how good carpet might look, it needs to be replaced.
I would also think why that perticular house has no offers...
From what I heard from FM listing agents, if 2 similar offers are on the table, homepath loan will be the winner.
Yes If they do accept our offer we will look at the inspection results and see if we still want it, hopefully nothing major because the house is not that old. I think most people were scared off by the broken window and the fact it runs on propane and the back fence, which we are not and know about the costs of propane and the costs of the repairs we can see right now.
The carpets in the bedrooms and the paint were done by fannie mae before they listed it(what the listing agent told us and it looks that way) of course I will still probably clean them anyways. I hope all goes well if our offer is accepted. Thanks EngGirl for the advice.
Oh, I hate to say that but I personally wouldn't buy something that Fannie Mae painted. This is the cheapest, the easiest and the best way to hide potential problems - inside or even outside of the house... Water damage is one of potential problems. Mold might be inside the walls and in some cases even under paint and you can see only pretty and freshly painted walls. As for the outside, painting house outside will hide all cracks and stucco defects.
If I would you, I would consider hiring some professionals instead of home inspector. Home inspectors are getting paid for VISUAL inspection. Whatever you cannot see, they also won't be able to see. I think water restoration company (sp?) should be able to detect water damage for example. Of course it's my openion, but I rather spend a little more and get reports from people who look deeper to uncover possible defects.
I am not in the real estate business or anything even close to it. I just have experience that I gained hard way and I am also at the market for a new home for my family... Most Fannie Mae houses in my area are with hidden problems, so please be careful! And best luck to you!!!
Yeah we have family that can help us with the repairs that we know of which are minor i.e; fix a few fence boards, carpet in living room and a window with a crack(of course the window will be repaired by a professional). That is why we asked for closing to have room just in case other things come up in inspection. We offered full price because we know all the homes in our area are going over appraisal and then falling through because all the appraisals are low that is why we chose the Homepath loan. Its work the full price to us, just wonder if fannie mae would be willing to accept our offer more because its a homepath loan. I do not think SJ08054 understood my question.
I do understand your question. I am trying to get you to look at the bigger picture instead of focusing on Fannie Mae properties and Homepath loan.
Ditto on the part about Fannie Mae home regarding their paint, carpet. They just make the house presentable. I've bid and purchased Fannie Mae property before. There are very few good deal. For their homes that are in top shape, you will find that regular MLS listing provides better deal.
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